The battle for territory in Perth’s independent newspaper market is getting fiercer as new players look to secure a slice of the action, as Mark Mentiplay reports.
The launch of two new independent newspapers is set to further test the Community Newspaper Group’s stranglehold on Perth’s suburban newspapers.
The two newcomers – the Independent Express (WA) in the north-east, and Canning Examiner in the south east – join an intrepid band of independents offering alternatives to Community’s 16 newspapers, mostly in the Perth metro region.
The major independents include Subiaco-based Post Newspapers, the south-eastern Examiner Newspapers, the Herald Publishing group in Fremantle, the northern Echo Newspapers, and the Independent Examiner Newspapers.
But if history is anything to go by, these newcomers won’t hurt Commu-nity’s current circulation of around 767,140, about 14,000 less than the previous year.
Owned by the giant multi-national News Corp (50.1 per cent) and WA Newspapers, Community Newspapers gave the latter an after-tax return of $4.8 million this year, up an impressive 30.4 per cent on the previous year.
But the newcomers believe there is plenty left for them.
Independent Express (WA) owners, ex-Community sales reps Craig Wright and Walter Puffler, bought more than $10,000 worth of desktop gear and jumped right into the middle of their old employer’s territory in Malaga.
Having toured the region with a newspaper mock up, they produced 42,000 copies of their first full colour, 16-page, fortnightly newspaper in March and have since taken circulation to 51,229, delivered directly to homes in 19 suburbs.
Current circulation extends from Landsdale in the north to Bassendean and Morley in the south, and Ellenbrook, Ballajura and Beechboro in the east.
Mr Puffler said the company expected to buy a third Apple ‘Mini Mac’, running Adobe In-Design software, to take production up to between 60,000 and 70,000 by about January next year and expand into other areas.
“The company is profitable and all future expansion will be funded out of cash flow,” he told WA Business News.
The partners have 16 years of community newspaper experience between them and have adopted a cross circulation boundary strategy to provide a better return on the advertising dollar.
“We put ourselves smack in the middle of three of Community Newspapers’ products to give our advertisers more coverage for the same advertising dollar. Now advertisers don’t have to pay three times to get the same coverage,” Mr Wright said.
“Our research has shown that where we are is where our advertisers want us to be.”
The Independent Express (WA) knew it had arrived when 71,000 circulation Community competitor, the Eastern Suburbs Reporter, recently launched its first colour real estate section, offering much cheaper rates, seemingly to counter the Express’s weekend home open market.
The Reporter similarly discounted advertising rates in its trades and services section, but Mr Wright said the Independent Express was holding its clients because its section was in colour and the opposition’s was not.
The Independent Express (WA) has eight staff, including the owners, and a full-time journalist.
Mr Wright previously worked for Gerald van Rongen’s Examiner Newspapers, which launched the Canning Examiner earlier this year to take the group’s circulation to 100,000.
Mr van Rongen has been publishing the Serpentine Jarrahdale Examiner and Armadale Examiner for the past 15 years, and the Gosnells Examiner for 12 years.
They are basically the same paper, with some replating, including the front cover. But the Canning Examiner is a stand-alone product with circulation of 35,000.
Mr van Rongen said there had always been strong competition from the Community Newspapers products.
“Just the usual predatory pricing and discounts. It’s always been tough, but we’ve weathered the storm and are doing OK,” he said.
“I’m very happy with the response we’ve had to the Canning Examiner. We went into these areas simply because we felt there was a need.”
Mr van Rongen said his newspapers had benefited from the very strong growth in the Gosnells-Armadale-Serpentine region. Much of this had flowed from the infrastructure associated with the Tonkin Highway and from projects such as new shopping centres, initiated by the Armadale Regional Development Authority, to cater for an increasing population spreading from Perth towards the hills.
“Business here is much more confident and prepared to spend. Circulation has increased 8 per cent in the last 12 months,” he said.
Post Newspapers, publisher of four suburban newspapers, celebrates its quarter century this month.
More than 51,000 copies are delivered weekly to houses and businesses from West Perth to North Fremantle, City Beach and Wembley Downs.
Founder and owner Brett Christian said the formula for success was good stories on local issues.
“Good journalism and good pictures. We know our region and have developed a strong, loyal following from our readers and advertisers,” he said.
A recent readership survey carried out by the Post showed its newspapers have a readership of 126,000, with 55 per cent keeping the paper for four days or more.
“Most dailies go out after a day,” Mr Christian said.
The Post was also the first newspaper in the metropolitan area to go online, in 1996, and now runs a single 64 to 72-page edition, including advertisements, every week.
The site gets 190,000 page views a month.
“Our advertisers get enquiries from all over the world, particularly those advertising real estate for sale or rent. A lot of expats also use it to keep in touch. The net has been very beneficial for our business. It’s a great brand promoter,” Mr Christian said.
The Post staff has grown to more than 30 and often the number of pages is bigger than a weekday issue of Perth’s sole daily, The West Australian.
